Question

Tesla Corporation (TSLA) stock has been in demand over the past year, tripling in value between July 2019 and January 2020, despite reporting losses in two of the last four quarters. Autonomous vehicle technology is poised for introduction in urban and long haul applications by companies such as Plus.ai. In an interview with Quartz, Bill Gates suggested that taxing robot output could help cover the shortfall in social services due to lost jobs and help pay for the increase in social services and support needed by displaced workers. An article in The Atlantic Magazine (A World Without Work) lays out the impact of automation on jobs and eventually on the default social contract in most capitalist societies. A review of a book with the same name provides additional insight.
Please research the topic of automation and its impact on an individual’s ability to monetize their human capital. Given the idea that humans need to contribute to society to feel fulfilled and happy, please respond to the following:

What is your personal philosophy about firms using automation without regard to its impact on society?

Answer 1

It is, undoubtedly, true that automation is changing the way labor markets will be organized in the future. Through AI and the development of robotics, a lot of routine jobs can be automated. While there are advantages to this like the reduction of human labor in highly risky jobs( consider people working on heavy machinery or gas plants or even defense), the loss of jobs on a large scale will be difficult to replace. While there will be new jobs in novel sectors, majorly in tech, workers will have to be trained to occupy these new skills which won't be easy (consider training a truck driver who has recently lost his job to operate a software). Workers will resist such changes and it will definitely lead to some resentment as well as unhappiness in society. further, there is no guaranteed that all those who lost jobs can be incorporated in the new sectors, creating anxiety and loss of sense of purpose as work occupies 1/3 of a time of human life. Without it, people will have to find new ways to keep themselves busy, which can lead to more conflics.